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Areas to be covered include the effectiveness of the FRC’s StewardshipCode in creating a market for stewardship, interaction between the code and existing stewardship-related rules in the FCA Handbook , and stewardship-related issues raised in the UK government’s updated Green Finance Strategy , released in March.
The concept of assessing what effective stewardship should look like was first introduced by the FCA in 2019 in a joint effort with the Financial Reporting Council (FRC), setting the groundwork which helped define what the minimum expectations should be for financial services firms investing on behalf of clients and beneficiaries.
Paul Lee, Head of Stewardship and SustainableInvestment Strategy at investment consultants Redington, told ESG Investor the proposals should simplify the vote reporting process for both parties.
However, as institutional investors, academics, NGOs, investor networks and data providers congregated in London last week for ESG Investor ’s inaugural Stewardship Summit , it became clear that many asset owners lack the resources necessary to fulfil their engagement ambitions.
Through SIPs, trustees with 100 or more members are now expected to publicly state their – or their external managers’ – engagement policy and priorities, and explain in detail how they steward their sustainableinvestments.
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